XpresSpa presented its first COVID-19 control at JFK Airport on 29 June.
Although the company has experienced difficulties in recent years, its new initiative can change the business.
Its robust locations and positioning at the airport will allow XpresSpa to meet the need for COVID-19 testing.
Although nothing is definitive, there have been contacts with other airports related to possible check contracts in the coming months.
While this new access to the check area would possibly put the corporate on the path to further expansion and profitability, there are still demanding situations going forward and we that being long right now is a speculative game.
Introduction
Since its recent lows of $0.40, XpresSpa (NASDAQ: XSPA) rose 1900% while the corporate peaked at $8.00. Anyone would be curious to see if such a drastic value movement was justified or if inventory was stuck in the recent, irrational increase, under other probably speculative names.
XSPA is a fitness and wellness company located basically in airports and offers massages, nail care, hair removal and facials. It is the leader in the fitness and wellness industry at airports, as it has a 60% market percentage and has tried to use the developing airport industry and its main pedestrian traffic to gain more customers.
A quick look at your monetary knowledge shows a company in trouble. They’ve been missing for five years. In XSPA’s 10-Q quarterly report, the company reported a net loss of $10.7 million in March 2020 at a net loss of $2.8 million in March 2019.The company’s revenue was affected by COVID-19, which particularly reduced air traffic and hurt profits. at outlets since February.
In fact, XSPA had to temporarily close its spas due to the widespread COVID-19. However, to counter such a complicated business climate, Doug Satzman, XSPA’s CHIEF Executive Officer, has put forward a new initiative: offering COVID-19 testing. Satzman noted the critical need for COVID-19 testing, as countries such as South Korea were able to curb the spread of the virus by imposing massive evidence. By temporarily identifying those who tested positive for the virus, many were able to quarantine themselves safely without risking further spread of the virus. On the other hand, the United States has taken a long time to put in place massive national evidence. As a result, there have been unprecedented cases and some states have begun to close to alleviate the problem. XSPA’s new initiative can simply bring down corporate support for its negative performance, as they are preferably designed to create a positive effect and counter the rise of cases in the country through massive testing.